Private bank deposit interest rates continue to drop, putting pressure on operations to focus on "digitalization" for breakthroughs.

The "interest rate cut wave" on deposits has been a hot topic in the banking industry since May this year. Small and medium-sized banks, represented by private banks, are still in the process of lowering interest rates from the previous round, while large and medium-sized banks are beginning a new round of deposit rate cuts, with the long-term fixed deposit rates of mainstream banks generally falling below 1.5%. Private banks, which have traditionally attracted deposits with relatively high interest rates, are now facing pressure from narrowing net interest margins and are taking measures to control their liabilities costs. Industry experts believe that private banks should seize the opportunity to reduce their funding costs in a low-interest rate environment, using digital capabilities to support risk management and business innovation in line with market demands.